Landlord purchasers now paying average £6,500 more Stamp Duty

Post navigation

Landlords in London and the south-east have felt most of the brunt of the buy-to-let tax clampdown first introduced by George Osborne when he was Chancellor.

Analysis by insurer Direct Line for Business looking at the cost of legislation for landlords, warned of the importance of being aware of extra Stamp Duty charges as well as the rolling back of mortgage interest relief and fines for failing to comply with Right to Rent, plus new energy efficiency regulations.

Based on an average UK house price of £219,544, a landlord purchasing an additional property will now have to pay Stamp Duty of £8,477, three and a half times more than the £1,891 that would previously have been paid, the insurer says.

The biggest hits are in London and the south-east, where the extra Stamp Duty charge adds £14,000 and £9,000 respectively, based on average prices of £483,803 in the capital and £316,026 in the south-east.

Other new laws that have come into play recently include Right to Rent, while the insurer also warned that landlords could be pushed into the higher tax bracket by the rolling back of mortgage interest relief and could face more charges as a result of the lettings fee ban.

Christina Dimitrov, business manager at Direct Line for Business, said: “Being a landlord in the current climate can be a profitable business, especially if there is a demand for rental properties as we’ve seen in recent years.

“However, with so many changes taking place, and with more on the horizon, it’s essential for any landlord to be fully up to speed with legislation, as the penalties for breaking the law can erode any potential profits.”

Post navigation

Email the story to a friend

One Comment

And the DCLG is now ‘consulting’ (aka paying lip service) on additional policies to bring into the PRS. They seem to be suffering from an anti-PRS delirium – feverishly searching for ever more ways of controlling the sector which all have unintended consequences which are extremely damaging – not least because they are driving landlords from the sector at the very point when more rented housing is needed. So we have people with very limited understanding of the sector focussing their energies on trying to implement everything the likes of Shelter suggests – and they pull in landlord organisations to be ‘consulted’ on this left-wing agenda. And all this from a Conservative Government! It’s astonishing.